The Facts About a No Cost Refinance
When deciding to refinance a home loan one has many different factors to consider. Those interested in refinancing must consider the interest rates, loan origination fees, points and how long they are going to stay at their current residence. Sometimes interest rates drop and mortgage holders would like to take advantage of the rates but have not financially prepared to pay for the costs associated with the refinance. In these situations, it can be advantageous to get a no cost refinance.
The Advantages of a No Cost Refinance
A no cost refinance is advantageous for homeowners currently in an adjustable rate mortgage that has recently risen or is set to rise and want to pay little to no out-of-pocket expenses. A no cost mortgage can also assist homeowners that plan on selling their homes in a few years and do not have the time to break even on the cost of a traditional mortgage refinance. Mortgage companies can afford to extend no cost refinances to homeowners by either rolling the charges into the mortgage loan or by raising the interest rate on the no cost refinance.
How a No Cost Refinance Works
A no cost refinance allows borrowers to lower their monthly payments by locking in a lower interest rate. The loan is “no cost” because the purchaser does not have to pay any loan origination fees or points upfront. To accomplish this, the lender or broker covers the costs either by slightly raising the interest rate or by adding the costs to the value of the loan so the borrower will eventually pay the costs back, plus interest. In a traditional refinance or loan, the buyer will pay up front points equal to 1% of the loan in return for a lower interest rate. In a no cost refinance, the opposite happens. The borrower does not pay any points and the lender charges a higher interest rate to cover the closing costs. Borrowers who choose to go with a no cost refinance should be aware that they are not getting a “free” refinance but a refinance where the charges have been reallocated.
Crestline Funding
Borrowers interested in saving money through a no cost refinance should definately consider working with Crestline Funding. Unlike most mortgage lenders, Crestline Funding is a direct lender that originates loans and refinances mortgages with their own capital. This financial freedom allows Crestline Funding to offer lower interest rates to borrowers interested in a no cost refinance. Crestline Funding does not have to work with any brokers or middle men that add extra costs so Crestline Funding is able to pass the savings directly to its customers.
Crestline Funding takes pride in honest lending practices and discloses all of the details in its no cost refinance loans allowing borrowers to make a confident financial decision without being misled by any fine print or fast-talking brokers. Crestline Funding’s attention to detail and excellent customer service has earned Crestline Finding an A+ Rating from the Better Business Bureau and thousands of referrals from satisfied customers.
Apply Now!
Ready to see why Crestline Funding is known as “Your Friend in the Mortgage Business”? Fill out the preapproval questionnaire below and one of Crestline Funding’s representatives will get back to you with your preapproval status as soon as possible.
Get a free quote now >>